Global Shares High Alpha
The Trust provides exposure to an actively managed, diversified portfolio of global shares constructed without reference to the MSCI World ex Australia Net Dividends Index in AUD.
Trust Objective
To provide a total return after fees that exceeds the rate of return of the MSCI World ex Australia Net Dividends Index in AUD.
Suitable Investor Profile
This Trust may be suitable for investors with an investment horizon of five years or more and who seek capital growth via a diversified exposure to investments listed on overseas stock exchanges and who can accept the short term fluctuation in price typically associated with such investments.
Fund Facts
Investment Approach
Perennial International seeks to identify quality companies with sustainable long-term growth at reasonable valuations with the underlying belief that these companies will show consistent earnings growth and be eventually positively re-valued by the market.
The Trust is run in a benchmark unaware, absolute return philosophy.
Investment Strategy
The Trust will invest in a diversified portfolio of global shares with an aim of delivering an absolute return to investors.
The portfolio will invest in a range of global companies which Perennial International, the investment manager, believes offer quality earnings potential and long term growth prospects at attractive prices. The portfolio will hold a select number of companies (usually between 40 and 60) listed on overseas sharemarkets. To further enhance potential returns, Perennial may also take advantage of tactical opportunities as they occur. Perennial aims to deliver an absolute return to investors and may therefore invest up to 50% of the portfolio into cash to preserve capital.
The cash level of the portfolio (maximum holding of 50%) will reflect Perennial International's confidence that markets could continue to provide positive returns. Perennial International is not attempting to be a "market timer" but rather be cognisant of the forces that could result in a broad sell off such as rising interest rates, resurgent inflationary pressures or economic malaise.
The Trust is authorised to utilise derivative instruments for risk management purposes, subject to the specific restriction that they cannot be used to gear portfolio exposure.
Currency exposure is generally left unhedged. However, currency hedging may be taken in periods of extreme currency volatility i.e. currency risk may be hedged in circumstances where it is considered that the Australian dollar is trading at significantly undervalued levels.